BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
A friend was renting a place in Denver, and just purchased a home. She had to pay rent in May because she wasn't sure when her closing would take place.
Landlord appears to have rented it out now. Can landlord collect double rent or do they owe her a refund?
Hey @Mindy Jensen It appears in Colorado, like pretty much every other state that I'm aware of, the landlord isn't allowed to "double dip" when it comes to rent collection. Here's a few online sources on the matter:
The fact of the matter is, the landlord cannot “double-dip,” collecting full rent from one tenant, who has vacated, and collecting again from the new tenant.
In Colorado, landlords are usually required to mitigate damages if you move out of your rental before the lease is up. They're supposed to make a reasonable effort to find a new tenant—and when they do, you're no longer on the hook for rent going forward.
I would think no, and that a refund is owed but I also am not specific to the market. I'd certainly ask for one first, before going the legal route to try and collect.
Hey @Mindy Jensen It appears in Colorado, like pretty much every other state that I'm aware of, the landlord isn't allowed to "double dip" when it comes to rent collection. Here's a few online sources on the matter:
The fact of the matter is, the landlord cannot “double-dip,” collecting full rent from one tenant, who has vacated, and collecting again from the new tenant.
In Colorado, landlords are usually required to mitigate damages if you move out of your rental before the lease is up. They're supposed to make a reasonable effort to find a new tenant—and when they do, you're no longer on the hook for rent going forward.
Has anyone referred to the terms of the lease? Is tenant in a standard lease or month-to-month? I’d bet a 6-pack of Strongbow, that it’s legal. Check the lease laws for CO. Don’t let your argument hinge on a “forum lawyer”.
@Mindy Jensen - I am 90% sure that you are not allowed to double-dip. Does it happen? I am 100% sure that it does (I have seen it). I would ask your friend to have a conversation with the landlord about it.
Has anyone referred to the terms of the lease? Is tenant in a standard lease or month-to-month? I’d bet a 6-pack of Strongbow, that it’s legal. Check the lease laws for CO. Don’t let your argument hinge on a “forum lawyer”.
I doubt a clause like this is going to be in the lease. If someone has language on a situation like this in their standard lease terms I'd be interested to see what it says.
Did she give a notice to vacate? That in itself is what I think will lawfully determine this.
In the end, the amount of time needed to simply go through proceedings for a months rent, and then try to collect it from the landlord isn't worth it in my opinion. If this is a large corporation it may make a difference, or if the landlord was that bad and a point needs to be made, then maybe.
Hello @Mindy Jensen there has been some good advice above. I just wanted to add that the double dip is not ethical. It is not the right thing to do. A Prorated amount could have worked out with both tenants.
@David Meier makes a great point. There is a difference between "can I" and "should I?" In one case there is the legal issue (see lease first), then there is the ethical issue. I own rentals in Colorado and my lease DOES cover pro-rated rents, replacement tenants, etc. As landlords, we should ask not just "can I?" but also… "Should I?"
I know this is late, but if she is paying rent, she keeps the keys and access to the property, so no a landlord can not rent it if she's still paying rent. He could charge her a fee for breakign the lease (if she did that).
I doubt a clause like this is going to be in the lease. If someone has language on a situation like this in their standard lease terms I'd be interested to see what it says.
Did she give a notice to vacate? That in itself is what I think will lawfully determine this.
In the end, the amount of time needed to simply go through proceedings for a months rent, and then try to collect it from the landlord isn't worth it in my opinion. If this is a large corporation it may make a difference, or if the landlord was that bad and a point needs to be made, then maybe.
2022 ...
Sadly, landlords have found a way around the law by stating in their standard lease that in order to be "released from liability," for vacating early, a lessee may pay an "Early Termination Fee." I'm currently in a situation where the landlord has me on the hook for close to $5K. I'm already out, and they've already re-rented the unit.
The lease clearly states that the "fee" releases the lessee from the liability of continuing in the lease to the full term. The lease, however, defines this "fee" as three months rent.
I haven't decided yet whether to just pay them and move on or find a lawyer. From their perspective, the lease is clear in describing this as an "Early Termination Fee." From my perspective, they've documented that they are in violation of Colorado law by defining this "fee" as the equivalent of "three months' rent." Of course, I'm one person and they're a major corporation. I purchased a condo so that I could escape getting gouged like this (rent up 20% year over year in Denver). I'll make the money back in a year on appreciation of the property. But it really sticks in my craw. How does anyone find a way out of the scourge of renting with these kinds of business practices by landlords?
Curious if there was additional follow through with this or new insight? Also interested if it was a 12-month lease agreement, and if there was verbiage in the lease agreement about a fee for early termination? Considering those two points, is it still viewed as double dipping? Perhaps paying for the rent for May but not paying an early termination fee would be fair and legal. I am not in Colorado but curious how this works. Thanks for all input.
